Correlation Between Brockhaus Capital and DICKER DATA
Can any of the company-specific risk be diversified away by investing in both Brockhaus Capital and DICKER DATA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Brockhaus Capital and DICKER DATA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brockhaus Capital Management and DICKER DATA LTD, you can compare the effects of market volatilities on Brockhaus Capital and DICKER DATA and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Brockhaus Capital with a short position of DICKER DATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brockhaus Capital and DICKER DATA.
Diversification Opportunities for Brockhaus Capital and DICKER DATA
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brockhaus and DICKER is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Brockhaus Capital Management and DICKER DATA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DICKER DATA LTD and Brockhaus Capital is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Brockhaus Capital Management are associated (or correlated) with DICKER DATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DICKER DATA LTD has no effect on the direction of Brockhaus Capital i.e., Brockhaus Capital and DICKER DATA go up and down completely randomly.
Pair Corralation between Brockhaus Capital and DICKER DATA
Assuming the 90 days trading horizon Brockhaus Capital Management is expected to generate 0.9 times more return on investment than DICKER DATA. However, Brockhaus Capital Management is 1.11 times less risky than DICKER DATA. It trades about -0.09 of its potential returns per unit of risk. DICKER DATA LTD is currently generating about -0.13 per unit of risk. If you would invest 2,360 in Brockhaus Capital Management on September 13, 2024 and sell it today you would lose (110.00) from holding Brockhaus Capital Management or give up 4.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brockhaus Capital Management vs. DICKER DATA LTD
Performance |
| Timeline |
| Brockhaus Capital |
| DICKER DATA LTD |
Brockhaus Capital and DICKER DATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brockhaus Capital and DICKER DATA
The main advantage of trading using opposite Brockhaus Capital and DICKER DATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brockhaus Capital position performs unexpectedly, DICKER DATA can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in DICKER DATA will offset losses from the drop in DICKER DATA's long position.| Brockhaus Capital vs. Ameriprise Financial | Brockhaus Capital vs. Ares Management Corp | Brockhaus Capital vs. Superior Plus Corp | Brockhaus Capital vs. SIVERS SEMICONDUCTORS AB |
| DICKER DATA vs. Arrow Electronics | DICKER DATA vs. KAGA EL LTD | DICKER DATA vs. Wayside Technology Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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